Saving key to better life
Published On March 20, 2014 » 3093 Views» By Moses Kabaila Jr: Online Editor » Opinion
 0 stars
Register to vote!

CHANGE may be hard, but the payoff can be priceless.
In addition to improving your financial situation, you may also find that your money management skills can benefit other aspects of your life.
This is the message some financial experts, and indeed life coaches, have been attempting to put across to everyone to help change the way money is viewed.
It provides the ties that bind with human security both at individual and national level.
The 2014 Financial Literacy Week, which has been spearheaded by the Bank of Zambia (BoZ), must have been useful to many Zambians who have taken interest to learn about the benefits of saving.
Much has been said by various speakers on the importance of accessing financial information necessary for improving individual lifestyles.
It is certainly not easy to change the mindset on matters of finance for various reasons, but taking a step to fight financial illiteracy may just prove to be the missing link in everyone’s life.
There are many factors that make people fail to save, ranging from the paucity of financial resources to high bank charges that make saving unattractive.
It is undeniable that most people, both in the formal and informal sectors, play a ‘catch-up’ as their earnings do not correspond with the high cost of basic needs.
Zambian is still largely couched in the extended family system where dependence on members who have some form of income is high. The haves are expected to shelter the have-nots, and this is part of the belief system that is hard to beat.
The competing needs which come in the form of rentals, food, school fees, medical bills, transport costs and other side expenses render many people incapable of saving money in banks.
As some experts have aptly observed, the rapidly changing economic climate, coupled with the increasing complexity of financial decisions, makes personal money management more challenging than ever before.
However, there could always be an attempt to find an escape route away from poverty which could come by way of acquiring financial knowledge.
It cannot be disputed that while there are many hardships to contend with daily, there is also reckless spending among many people who, despite enjoying reasonable and timely salaries, still fail to stick to prudent stewardship of their finances.
We are here referring to failure to manage a budget, no matter how meager the earnings may be.
Many people are ensnared by what in some circles is referred to as ‘impulse buying’ as they would be attracted to purchase anything for as a long as their wallets or purses are containing money.
Examples also abound on retirees who have depleted their packages within a short period of time because they hop from one shop to another to accumulate things they never budgeted for.
These are the weakness that could be cured through exposure to financial management skills.
We, therefore, agree with BoZ acting coordinator for the financial education coordinating unit, Kapulwa Kafumukache, who said in Kabwe that in order for the country to develop economically, it is important for the public to have access to financial information.
Ms Kafumukache is right to say it is only when one has financial knowledge that they could make decisions that would profit them and the nation at large.
But it is also important to remind the banking sector on the need to encourage saving by introducing affordable products.
Government has not masked the fact that financial institutions must come up with products that would enhance the spirit of saving among the Zambians.
Outgoing Copperbelt Permanent Secretary Stanford Msichili said in Kitwe, in contributing to the Financial Literacy Week, that Zambia also desires to see banking products that would equip children and youths with financial skills to benefit their lives in the future.
The field of financial literacy is wide-ranging, covering many disciplines, topics, audiences, stakeholders, and providers.
Significant efforts are taking place at local, state, national, and international levels. In July 2011, the President’s Advisory Council on Financial Capability in the United States of America proposed that financial education be taught in all American schools.
This is the route Zambia must seek to take to empower citizens at an early stage.

Share this post
Tags